Oil prices rose on Monday in international markets towards $76, driven by the deepening economic crisis in Venezuela and the expectation of a U.S. decision to reinstate sanctions on Iran.
In the London market, the price of a barrel increased by 80 cents compared to the previous close, reaching $75.67. In the U.S. market, barrels were traded at a price 84 cents higher, at $70.56.
>>>Oil Prices at Highest Levels Since November 2014.
The crisis in Venezuela, a major oil exporter, has overshadowed the increase in U.S. production, which has risen by more than a quarter in the past two years to 10.62 million barrels per day, analysts explain.
“The counterbalance to the increase in production in the United States is the simultaneous decrease in production in Venezuela,” states Commerzbank analyst Carsten Fritsch.
The American oil company ConocoPhillips has decided to take over key assets of the Venezuelan oil company PDVSA in the Caribbean in order to obtain compensation of two billion dollars in arbitration proceedings. This move could further pressure the already reduced production and export of the Venezuelan company.
Due to insufficient investments, Venezuelan production has halved since the early 2000s to 1.5 million barrels per day.
